"We remain very positive on equities this morning, as expected, we had strong earnings in the US which has so far have bolstered sentiment. The Beige Book yesterday also confirmed a positive outlook for the US economy . I expect equities to remain positive and go higher this week and especially next week which will see tech earnings. So be careful about shorting equities at this point in time," Garnry says.
The positive undertone has spilled into Europe and three regional heavyweights – ABB, Novartis and Nestlé – have either matched or outdone their earnings expectations.
Meanwhile, the ever-flattening yield curve is an increasingly urgent topic of conversation and the spread between US 5-year and 10-year Treasuries is now at its flattest since 2007. Still, incoming New York Federal Reserve president John Williams said he was not concerned at this point.
Quarterly Outlook Q2 2022: The End Game has arrived
- Shocks from covid and the war in Ukraine have forced the global financial and political world to change, but what will the end game be?
Productivity and innovation have never been more importantAs the world economy hits physical limits and central banks tighten their belts, could equities be facing a 10-15% downside?
The great EUR recovery and the difficulty of trading itIf the terrible fog of war hopefully lifts soon, the conditions are promising for the euro to reprice significantly higher.
Tight commodity markets – turbocharged by war and sanctionsWith supply already tight, commodities keep powering on. But will it last for yet another quarter?
Between a rock and a hard placeGeopolitical concerns will add upward price pressures and fears of slower growth, while volatility will remain elevated.
The Great ErosionInflation is everywhere and central banks try to combat it. But will they get it under control in time?
Australian investing: Six considerations amid triple Rs: rising rates, record inflation and likely recessionWhile global financial markets are struggling in an uncertain world, the commodity-heavy Australian ASX index is poised to keep a positive momentum.
Cybersecurity – the rush to catch up with realityWith the invasion of Ukraine, governments and private companies are rushing to reinforce their cyber defenses.